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7 Oct 2013
Asian bourses fall sharply due to US political “jitters”
FXstreet.com (Athens) – The Asian bourses driven sharply downwards in the first trading session of the week amidst the “risk-off” sentiment due to the continuing US government shutdown and the looming debt-ceiling issue as of 17th October.
Hong Kong and Japan bourses lead the collapse; investors risk sentiment hits the “snooze” button
Kenichi Hirano market advisor at Tachibana Securities mentioned that markets remain worry and anxious on the constant shutdown of the US government, alongside with the “no progress at all” in breaking the US deadlock. US House Speaker Boehner suggested that “there was no progress at all on the US government shutdown as well as on the debt ceiling issues during the weekend”, boosting the risk-off sentiment and drive heavily downwards the Asian bourses. Hong-Kong and Japan stock markets suffered mostly; elaborating on Hang Seng Index closed down 0.9%, while the Shangai index remained closed as China enjoyed the last day of the National week holidays. What’s more, Nikkei in Tokyo also fall apart by 0.9%, which is a great decline if we take into deep consideration that last week the Japanese Index lost approximately 5%. Traders should consider that the decline in Nikkei can be attributed apart from US woes also the strong strengthening of the Japanese currency. Finally the S&P/ASX 200 in Australia closed at lower levels down 0.3%, mainly due to very thin trading volumes as the vast majority of the Australian states were on public holiday.
Hong Kong and Japan bourses lead the collapse; investors risk sentiment hits the “snooze” button
Kenichi Hirano market advisor at Tachibana Securities mentioned that markets remain worry and anxious on the constant shutdown of the US government, alongside with the “no progress at all” in breaking the US deadlock. US House Speaker Boehner suggested that “there was no progress at all on the US government shutdown as well as on the debt ceiling issues during the weekend”, boosting the risk-off sentiment and drive heavily downwards the Asian bourses. Hong-Kong and Japan stock markets suffered mostly; elaborating on Hang Seng Index closed down 0.9%, while the Shangai index remained closed as China enjoyed the last day of the National week holidays. What’s more, Nikkei in Tokyo also fall apart by 0.9%, which is a great decline if we take into deep consideration that last week the Japanese Index lost approximately 5%. Traders should consider that the decline in Nikkei can be attributed apart from US woes also the strong strengthening of the Japanese currency. Finally the S&P/ASX 200 in Australia closed at lower levels down 0.3%, mainly due to very thin trading volumes as the vast majority of the Australian states were on public holiday.